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ABNs & Applying for a Low Doc Loan

ABN: What Is It, Should You Get One and How Is It Used For Home Loans

If you’re going to become a self-employed person, you need to have an ABN (or Australian Business Number). If not, the companies you do business with can hold 46.5 percent of payments that you’re owed for tax reasons.

And, this number will also help you to attain a low doc loan. Thus, registering for one is extremely important.

What’s an ABN?

It’s actually a unique 11-digit number that identifies your business and used when interacting with other companies.   You’ll have to put the ABN number on sales-related documents and invoices. It is also to be used with government agencies like the Australian Tax Office (ATO). And, although it’s dependent on your turnover, you need it to register for GST.

Is getting an ABN worth it to you?

If you want to run your own business, it’s certainly necessary.

In What Others Ways Is The ABN Used?

  • Simplify your business activity statement
  • Claim energy grant credits
  • Claim GST credits
  • Purchase an Australian domain name

How Can You Apply For an ABN?

You have three options in which to apply for your ABN

  • Fill out online application on the Australian Business Register website
  • Paper applications documents can be downloaded through the ATO website
  • Tax agent who can complete the application for you online

Make sure that you fill the information out as clearly and correctly as you can. Mistakes, whether accidental or on purpose, can cost you severely. If you falsify information, you could get hit with a $10,000 fine. A mistake on the ABN application could cost you more than $3,000.

If you are already self-employed and are looking to secure finance to purchase a home, commercial property, equipment for your business or any other valid purpose, contact us today to see how you can qualify for a low doc loan.

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Starting a business?

Click here for more info about registering an ABN.

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Low Doc Loans – What Lenders Look For

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Low Doc Loans are an ideal lending solution for people who are self-employed and struggling to secure traditional finance. If you are in the market for a Low Doc Loan, there are several key criteria that lenders look at when assessing your application for approval.

Below is a brief list of these key criteria.

Deposit

As a general rule a minimum 20 per cent deposit is required to secure a low doc loan for residential purposes.  However at Sherlock we have options for low doc loans up to 85% even 90%  – meaning the minimum required would reduce to a 15% or 10% deposit.

Self-employed history

Your ABN is a key component that lenders look at in determining how long you have been in self-employment. Normally a minimum 12-month ABN is required, however the longer you have been self-employed the more agreeable the lender will be.

Assets

If you can show that you hold significant equity in assets that you hold, lenders tend to view your low doc loan application more favourably.

Existing loan repayment history

Lenders will often ask to look at statements on other loan facilities you currently hold to ensure you have a consistent repayment history.

Maximum loan amount/exposure

Low doc home loan lenders will limit the amount of overall lending they will advance to a low doc borrower.  As a general rule this limit is $1 million.  However at Sherlock Holmes we have access to some niche low doc loans that will advance funds in excess of this minimum.

Contact the team at Sherlock Holmes Lending Solutions to find out more about low doc loans and how the options available can be tailored to your needs.